Linking PF account with PAN can save you from TDS, here’s how
Zee News
EPFO has created a new tax structure for PF contributions over a threshold of Rs 2.5 lakh for private-sector employees and Rs 5 lakh for government employees. The EPFO norms say that if TDS is less than Rs 5,000, there will be no deductions for Indian residents.
New Delhi: EPFO, the statutory body, has issued new taxation and deduction standards for employees' retirement savings. If provident fund accounts are not in final settlement or transfers, EPFO specifies that tax deducted at source (TDS) will be implied on the date of the credit of interest on those accounts.
EPFO has established a new tax structure for PF contributions over a threshold of Rs 2.5 lakh for private-sector employees and Rs 5 lakh for government employees.
Meanwhile, TDS will be applied to PF final settlements, transfer claims on transfer from exempted establishments to EPFO, and vice versa, up to the aforesaid level.
The rate of TDS that an employee will pay is one of the most important considerations. On their PF interests, however, not everyone will be required to pay TDS.
According to EPFO norms, if TDS is less than Rs 5,000, there will be no deductions for Indian residents; nonetheless, the member's individual tax liability will stay the same.
